Overcoming Financial Limits of SMEs and Small Business Owners Relying on Collateral and Guarantees
Emergence of Advanced Internet-Only Banks Expected
Competitive Edge with Up-to-Date Data and Diverse Enterprise Solutions
Duzon Bizon is preparing to establish the 4th internet-only bank. The company has already secured the necessary corporate data for internet-only banks as well as experience and capabilities in developing AI-based corporate credit evaluation models, which gives it confidence that it can survive competition with the current three internet banks. The fact that Shinhan Bank, which had previously delayed investment in internet-only banks, may participate in the "Duzon Bank Consortium" is also cited as proof of Duzon Bizon's competitiveness.
As of 12:08 PM on the 9th, Duzon Bizon's stock is trading at 56,400 KRW, up 14.98% from the previous day. Since the news of the Duzon Bank initiative was announced on the 4th, the stock price has risen about 26%. The market sentiment expecting the emergence of a decacorn (a private venture company valued at over 10 trillion KRW) appears to be influencing the stock price.
Interest is focused on the background as Shinhan Bank is reportedly considering participation in the Duzon Bank Consortium. Earlier, Duzon Bizon, an enterprise resource planning (ERP) specialist company, announced on the 4th that it is preparing to obtain approval for Duzon Bank, the first internet bank in Korea specialized for small and medium-sized enterprises (SMEs) and small business owners. According to financial sources, Shinhan Bank is preparing to form the Duzon Bank Consortium together with Duzon Bizon. It is known that Shinhan Bank and Duzon Bizon formed a task force (TF) for consortium formation and began discussions in July last year.
Among the four major commercial banks, Shinhan Bank is the only one without a stake in an internet-only bank. Shinhan Bank previously considered joining the Kakao Bank and Toss Bank consortiums but ultimately did not participate. Analysts suggest that the loan portfolios of the three internet banks are mostly in the personal finance sector, except for a small portion of individual business loans, which may have reduced their attractiveness. In contrast, Duzon Bizon can maximize synergy effects in the corporate finance sector based on its vast corporate data.
Due to the lack of accurate credit rating data for SMEs and small business owners, they often rely on collateral and guarantees, making smooth funding difficult. Duzon Bank is expected to continuously develop a lineup of customized financial products for small corporations, individual business owners (SOHO), and their employees, thereby driving innovation in interest rates and credit limits for SMEs and small business owners who are in the financial blind spots. This strategy is only possible for Duzon Bizon, which has secured the corporate data and AI-based corporate credit evaluation model development experience and capabilities necessary for an internet-only bank specialized for SMEs and small business owners.
By leveraging core corporate solutions such as ERP and groupware, along with corporate cash flow information, data verification devices, and internal control functions, Duzon Bizon can enhance the value of corporate data for financial innovation. The company shows a commitment to breaking away from the standardized form of existing financial institutions and radically transforming the financial procurement paradigm for SMEs and small business owners.
The estimated corporate value of Toss, which operates Toss Bank and Toss Securities, is between 10.4 trillion and 12.4 trillion KRW. Kakao Bank’s market capitalization exceeds 12.5 trillion KRW. If Duzon Bizon establishes Duzon Bank as planned and surpasses the limitations of the existing three internet-only banks, expectations are rising that its corporate value will increase.
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